FTX, the third largest exchange in the world, went bankrupt within days and the pain of the community is evident on Crypto Twitter.
Severity of loss
Crypto Twitter has clearly demonstrated the severe consequences of the FTX collapse.
there are countless Investor I have more than half of my money in FTX and am worried if I can get it back.
95% funded on ftx. Pain is real.
— Mohit Salt 📈 (@singhsoro) November 9, 2022
Some of them are nervously hoping to recoup their investment, while others have already given up.Investor answered In the tweet above it says:
“Your funds are not in FTX. Your funds are gone.”
Some investors say lost Savings due to plummeting FTT. Since FTT is the native token of his FTX, it is not surprising that investors hold a significant amount of his FTT for trading purposes. Even if FTX somehow manages to allow users to withdraw their funds, those who invested in FTT are still at a loss.
The FTT collapse also reminded the community of the Terra-Luna collapse that happened just six months earlier. Some members of crypto Twitter drew attention to the damage these collapses had done to crypto’s reputation and called for crypto regulation to prevent similar catastrophes from occurring in the future.
#Crypt Need regulation…#FTX The collapse has destroyed crypto in the past few days. pic.twitter.com/zy2AFcLimZ
— Pierre_Trading News (@Pierre_StockUP) November 9, 2022
Meanwhile, Science.io CEO Will Manidis said FTX CEO Sam Bankman-Fried was created by an intelligence agency that wanted to prevent its adversaries from laundering money via cryptocurrencies. I’m implying that
If I am an intelligence agency and I am concerned that my adversaries are using cryptocurrencies to launder money, how can I stop it?
First, find core casting ideas for tech founders.man with mitt dropouts, finance, cargo shorts, long hair, beanbag
— Will Manidis (@WillManidis) September 21, 2022
According to Manidis, FTX’s offshore trading and its non-auditable trading were intentionally arranged that way.
Background
FTX first caught the attention of Binance CEO Changpeng (CZ) Zhao in a tweet on November 6th. This is due to “recently revealed facts” that Binance has decided to liquidate all his FTT holdings. Since FTT is his FTX’s native token, the community quickly jumped to conclusions and assumed a Terra-Luna-style collapse was underway.
SBF responded quickly to CZ. Although he has now deleted those tweets, SBF assured the community on his November 7th that he was fine with FTX and its assets.
On November 8th, CZ tweeted to inform the community that Binance intends to fully acquire FTX and cover the liquidity crisis they are facing. Within 24 hours, Binance withdrew its takeover offer as a US agency began investigating his FTX.
According to CryptoSlate data, the FTT token has lost almost 90% of its value since the beginning of the week, dropping from around $24 to $2.8. Solana (SOL) also took its fair share of tremors, posting a loss of around 50% and retreating from $32.7. to $16.98. Additionally, his website for SBF’s Alameda Research has also been taken private.
Response to CZ
At the time of this writing, another popular hashtag on Crypto Twitter is #CzBinance. Given that all began to unravel following his CZ tweet on November 6, some members of the community have accused CZ of letting his FTX down on purpose.
Hooray for all crypto lords – Cz Binance!
what a fucking move
This will go down as one of the biggest events in the history books of Crypto. #Cz Binance #FTX #BinanceSmartChain
— Ken Lama (@KenTheCrypto) November 8, 2022
